How Auto Stocks Fared in the Second Week of May 2017
Mainstream automakers in 1Q17
For the auto industry, 1Q17 earnings season is nearly over. All mainstream automakers including General Motors (GM), Ford Motor Company (F), Toyota (TM), and Fiat Chrysler (FCAU) have released their first quarter results in the last three weeks. While General Motors and Fiat Chrysler’s 1Q17 results reflected strength, Ford and Toyota continued to disappoint investors with dismal earnings results. Now, let’s take a quick look at how auto stocks performed for the week ending May 12, 2017.
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Negative sentiment in May
The broader market traded on a mixed note last week and the S&P 500 Index (SPY) ended the week with an ~0.3% loss. Meanwhile, the stocks of the two largest US automakers continued to underperform the broader market. General Motors and Ford lost ~0.4% and 2.0%, respectively, during the second week of May. Fiat Chrysler stock fell 4.4% in the last week. A 7% fall in Fiat Chrysler’s April US sales could be the primary reason for weakness in its stock.
In contrast, Tesla (TSLA) witnessed a good recovery and rose 5.3% last week after falling 1.8% in the previous week. Investors’ high expectations from Tesla’s upcoming Model 3 along with solid growth in its 1Q17 vehicle deliveries could be two primary reasons for the sharp recovery on Wall Street. The company released its 1Q17 results on May 3. Read How Tesla Stock Reacted to 1Q17 Results to learn more.
In this series, we’ll review how auto stocks performed on Wall Street in the second week of May 2017. We’ll explore the major developments that took place in the auto industry in the last few weeks. We’ll also look at some key technical support and resistance levels for these companies for the week ahead.
Next, we’ll find out what to expect from General Motors stock this week.